BW LPG (NYSE:BWLP) posted fourth-quarter profit attributable to equity holders of $104 million, or $0.69 per share, driven by a combination of resilient shipping performance and contributions from its Product Services segment.
The Singapore-based carrier, one of the world's largest owners of Very Large Gas Carriers (VLGCs), saw its total net profit after tax reach $123 million for the period, yielding an annualized return on equity of 26%.
Operational performance for the quarter exceeded the company’s own forecasts.
Time Charter Equivalent (TCE) income for shipping concluded at $50,300 per available day, comfortably surpassing prior guidance of $47,000.
This outperformance was anchored by a strategic time charter coverage of 44% of available days at a rate of $48,100 per day.
Maintaining a strong balance sheet, the company ended the year with $613 million in liquidity and reduced its net leverage ratio to 28.4%.
In a move reinforcing its commitment to shareholder returns, the board declared a cash dividend of $0.57 per share.
This payout represents 100% of the shipping-specific net profit for the fourth quarter and implies an annualized dividend yield of 12.5%.
Looking ahead to 2026, the company provided bullish guidance for the first quarter, having already fixed 94% of available fleet days at an average rate of approximately $54,000 per day.
This optimistic outlook comes despite the escalation of the Iran-Israel/US conflict.
While the company noted it currently has three Indian-flagged vessels in the region—two on time charter and one in dry dock—it reported minimal negative financial impact to date.
Further stabilizing its long-term outlook, BW LPG secured two additional three-year time charter-out contracts in February.
These agreements increase the company's fixed-rate coverage for 2026 to 36% at an average rate of $43,700 per day, providing a significant hedge against potential market cooling later in the year.